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What Is Digital Currency-How Does It Work
What is digital currency? It is specified as: cash saved and moved in digital form. Sounds easy enough, however how does it all work?
This type of currency is believed to be good to use for making purchases on the internet since if it works the way it was indicated to, deals must be rather anonymous and untraceable back to the payer or user.
This means that hackers would no longer be able to collect individual information from individuals who utilize their credit cards to make online purchases. This would clearly decrease the variety of stolen identities that take place every day.
To assist you understand more of, “what is digital currency?” I have done quite a bit of research on the subject and have discovered that there are a number of different types out there, each with it’s own special qualities.
Here are simply a few with their descriptions following:
1. Digital Gold Currency – This type is backed by gold kept in vaults. The gold supplies an extra measure of security and if you hold this kind of currency, you might potentially straight exchange it for solid gold bullion.
2. Central Currency Systems – these are like PayPal and these business enable you to send out cash all over the world as long as you have money in the account. For some services supplied by these types of companies, you get charged a fee on the receivers end of the transaction.
3. Decentralized Currency Systems – Like Bitcoin are all based on cryptography and/or trust networks. Called Hard Electronic Currency, it is meant to be more like utilizing money to make your deal however your deal is non-refundable once made. This type of system just operates in one direction.
The E-cash idea has evolved together with the evolution of the Web. People simply do not feel comfortable with giving their personal charge card info over the Internet when buying.
Too many bad things can happen like identity theft. No one desires their identity taken.
So, lots of companies have tried to produce this type of payment or monetary system to reduce the threats of shopping online.
Numerous countries have successfully created systems for “internal” usage such as Hong Kong’s Octopus card. This card works much like a sort of debit card where the user loads money onto the card and then all the cash is transferred into a bank. They can then use the card for anything they need to use it for.
Some countries are dealing with or have systems that allow the user to move money through mobile phones. I believe this is rather like what Chase lets their clients do. Their clients can take a picture of their check, front and back, with their phone and make their deposit digitally.
I do hope that this gives you some concept of what is digital currency and how it is attempting to take it’s location worldwide of e-commerce. There might be a little more to it than I might describe in simply one small post but I believe you can get an excellent idea.